Grant Thornton picks up £500K Mothercare audit
High street mother and baby retail chain Mothercare has chosen Grant Thornton UK as its new auditor with effect from the 28 March 2020 financial year, ending a 17-year relationship with Deloitte
25 Mar 2019
The appointment was the result of a competitive tender and is subject to approval by shareholders at the next annual general meeting of the company in July 2019.
Deloitte will resign as auditor of the company following completion of the 30 March 2019 audit. The firm, which has been the external auditor since 2002, did not participate in the tender due to the rules on the mandatory rotation of auditors.
According to its 2017/18 annual report, Mothercare paid Deloitte £500,000 in audit fees for the year, plus £100,000 for non-audit services.
Mothercare has endured a difficult time in recent years and is currently implementing a strategic transformation plan to deliver at least £19m of annualised cost savings. It has closed a number of UK stores and reported a UK like-for-like sales decline of 11.4% during the first quarter of this year, while international retail sales were down 1.1% in constant currency and down 3.2% in actual currency.
Report by Pat Sweet